But there are also gaming companies that are struggling. More specifically, the smaller and younger studios that rely heavily on publishers to fund their project. With major industry-related events such as Game Developers Conference postponed and Electronic Entertainment Expo cancelled, they are finding it hard to establish contact with potential partners for their game projects.
Bigger studios are also facing obstacles to their game development efforts. Although the industry is heavily digitalized, working from home becomes a challenge when huge datasets need to be downloaded and altered on a daily basis by software developers. The strict security measures normally taken by the studios are hard to maintain in the very different environment of the employee’s home.
Moreover, there are some parts of game development where close interaction is essential. In many locations it is impossible to do motion capture of actors for realistic in-game-movement. Game soundtracks can also cause a headache for game producers as some big titles rely in part on orchestral music. The idea of creating an ensemble of ten or more musicians is often just not possible at the moment.
In a survey of 2,500 industry professionals, 33 percent claimed that they had to publish games later than planned as a result of the Corona crisis.
Opportunities in Germany’s gaming market
The world’s largest gaming exhibition gamescom – held annually in Cologne – will not take place physically this year. Instead, there will be a digital version of the event.
This decision might enlarge the audience significantly as gamers can participate from all over the world without having to shoulder the high costs of traveling to Germany.
Germany is the fifth biggest gaming market worldwide after China, USA, Japan, and South Korea. Turnover for 2020 is estimated to be around USD 6 billion and the country boasts 34 million regular gamers.
There are 651 gaming studios and publishers in Germany and 128 universities that offer game related courses.
There is a strong professional and graduate network that international gaming companies can use to advance their business in Germany.
Public game funding has been renewed and will be continued until 2023. Game developers in Germany receive EUR 50 million annually. From this perspective, it makes sense for international studios to consider an office in Germany.